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Butuan City
SEMI-FINAL COMPREHENSIVE QUIZ
1. Rizal Traders provided the following data for the year ended December
31, 2017. Operating Expenses, excluding finance cost, is 10% of Net
sales and 12.5% of cost of sales. Finance cost is 5% of Net sales.
Net profit for the year amounted to P125,000. How much is the Net
Sales?
a. 781,250
b. 735,294
c. 833,333
d. 2,500,000
2. This contain the vital information about the nature and amount of the
transactions.
a. Sales Invoice
b. Bill of lading
c. Source Documents
d. Official Receipt
3. A document issued by the carrier that specifies contractual conditions
and terms of delivery such as freight terms, time, place, and the
person named to receive the goods.
a. Sales Invoice
b. Bill of lading
c. Source Documents
d. Official Receipt
4. A written order to a bank by a depositor to pay the amount specified
in the check from his checking account to the person named in the
check.
a. Deposits Slips
b. Purchase Requisition
c. Credit Memorandum
d. Check
5. Which of the following comes first in the purchase transaction?
a. The purchasing department prepares a purchase order after
checking with the price lists, quotations, or catalogs of
approved vendors.
b. When certain items are needed, the user department fills in a
purchase requisition form and send it to the purchasing
department.
c. Before approving the invoice for payment, the accounts payable
department compares copies of the purchase requisition, purchase
order, receiving report and invoice to ensure that quantities,
descriptions, and prices agree.
d. After receiving the purchase order, the seller forwards an
invoice to the purchaser upon shipment of the merchandise.
6. Cash discounts from the point of view of buyer.
a. Buyer’s cash discounts.
b. Seller’s discounts.
c. Sales Discount
d. Purchase Discount
7. The following information were gathered from the records of Rivera
Merchandising.
Invoice Price P100,000
Discount terms 2/10, n/30
List Price P150,000
Compute for the amount due within discount period?
a. 100,000
b. 147,000
c. 98,000
d. 144,060
8. The following information were gathered from the records of Quirequie
Merchandising.
Discount terms 2/10, n/30
List Price P150,000
Trade discount 20% and 10%
Compute for the amount due within discount period?
a. 100,000
b. 108,000
c. 105,000
d. 105,840
9. Which of the following is correct?
Who shoulders
the Who pays
transportation the
Freight terms ? shipper?
a FOB Destination, Freight Seller Buyer
. Prepaid
b FOB Shipping point, Freight Buyer Seller
. Collect
c FOB Destination, Freight Seller Buyer
. Collect
d FOB Shipping point, Freight Buyer Buyer
. Prepaid
10. Assume that Melqui Traders sold merchandise on account totaling
P20,000 FOB Shipping point, freight collect; terms 2/10, n/30. The
transportation cost amounted to P2,000. The entry to record this
transaction would include:
a. Dr. Accounts Receivable P21,600
b. Cr. Sales P19,600
c. Dr. Accounts Receivable P22,000
d. Cr. Sales P20,000
11. A merchandiser will earn an operating income of exactly zero when
a. Cost of goods sold equals gross margin
b. Gross margin equals operating expenses
c. Net sales equals cost of goods sold
d. Operating expenses equal net sales.
12. Gross margin equals the difference between net sales and
a. Cost of goods sold.
b. Cost of goods sold plus operating expenses.
c. Operating expenses.
d. Profit.
13. A sale on March 21 with terms of n/10 EOM due to be collected by
a. March 31
b. April 1
c. April 10
d. April 30
14. Under perpetual inventory system, which of the following accounts
would not be used?
a. Cost of goods sold
b. Merchandise Inventory
c. Purchases
d. Sales
For items 15-19, use the following problem to answer the following
requirement.
Account Name Debit Credit
Sales 750,000
Sales Returns and Allowances 15,000
Sales Discounts 10,000
Purchases 170,000
Purchase returns and allowances 20,000
Transportation In 30,000
Selling Expenses 75,000
General and Administrative Expenses 275,000
For each of the following Mary Paz Abad Retailers purchases, assume that
credit terms are 2/10, n/30 and that any credit memorandum was issued
and known before Mary Paz Abad Retailers made the payments.
Edgel Abear Car Repairs Shop purchases a large amount of auto parts for
its business. The following table summarizes selected transaction data:
Jowei Coffee-bookstore
Additional Information:
1. All sales are on credit.
2. The current ratio on December 31, 2017, is 3.0.
3. The receivables turnover for 2017 is 10 times.
4. The inventory turnover for 2017 is 4.8 times.
5. The net profit margin for 2017 is 14.5%.
6. The return on assets is 22% for 2017.
SDS Trading
Income Statement
For the Year Ended December 31, 2017
Net Sales 2,750,000
Cost of Goods Sold ?
Gross profit ?
Selling and Administrative Expenses 556,250
Operating Income ?
Income Tax Expense 140,000
Net Income ?
SDS Trading
Statement of Financial Position
As of December 31
Current Liabilities
Trade Payable P ? P206,250
Non-current Liabilities
Loan Payable ? 700,000
Total Liabilities P ? P906,250
Owner’s Equity 850,000 843,750
Total Liabilities and Owner’s Equity P ? P1,750,000
“It is impossible to live without failing at something, unless you
live cautiously that you might as well not have lived at all – in
which case, you fail by default”. – JK Rowling